RTAR the MTA's way ahead

Motor Traders' Association of NSW fully endorses the use of realistic times and rates methodology with respect to compiling estimates for all types of motor body repair work as from the 1 July 2010.

In its newsletter to members, the MTA reminded the motor body repair industry that the Motor Vehicle Insurance and Repair Industry Code of Conduct endorses the change from "Funny Time Funny Money" estimating methodology to the Realistic Times and Rates estimating methodology.

6. Estimate, Repair and Authorisation Process

6.2 The parties acknowledge ongoing changes in the industry in relation to the development of realistic times and rates:

(a) Insurers will state clearly the estimation methodology to be applied; and

(b) Repairers in their estimation methodology may separately cost paint, parts, and significant consumables and mandatory government environmental levies in so far as they apply to a repair.

"Should any MTA member find themselves being discriminated against by any insurer or assessing organisation representing an insurer, MTA NSW will be at hand to assist those members with the dispute resolution process available to ensure your rights under the MVIRI Code of Conduct," according to the MTA report.

MTA NSW has over the past year worked closely with insurers in regards to its commitment to offer support for those insurers that required extra time to adapt their current estimating systems to a more realistic approach to costing motor vehicle repairs.

As a consequence of this commitment MTA supports the motor body repair industry to fully adopt realistic times and rates for all estimates for motor body repair work.

Realistic electronic times.

MTA regards the existing MTA Times Guide (paper based manual) as being obsolete as it does not reflect the recommendation to separate labour from significant consumables and the use of realistic times and rates as referred to in the MVIRI Code of Conduct. Insurers, assessing firms and independent assessors have now also been notified of this advice.

MTA has been actively promoting the implementation of a modern realistic times guide that is web based and can be accessed directly via the quoting systems.

"The NSW Fair Trading Act has been amended to require insurers and repairers comply with the Code. Failure to comply with the Code constitutes a contravention of the Act."

MTA is advising motor body repairers to exercise their rights to estimate the cost of repairs in line with the MVIRI Code of Conduct.

"With the onset of RTAR, MTA is committed to upholding the hard fought benefits of the MVIRI Code of Conduct.

"There should not be any interference with the commercial relationships between individual Insurers and Repairers."

The MTA will continue to offer support to all insurers transitioning to RTRM methodology. This is to ensure the smoothest possible transition from FTFM to RTRM and is in line with our policy of providing information and education to the motor body repair industry as 1 July soon approaches.